Mr Dreyfus congratulated Lion-Dairy & Drinks for preparing for a clean energy future by transforming their operations to reduce energy emissions and improve its competitiveness.

"Lion Dairy & Drinks is expecting to achieve savings of over $100,000 in energy costs per year," said Mr Dreyfus.

"This project will replace three existing air compressors with three new variable speed drive air compressors at their Chelsea facility and will also replace two existing chillers and a cooling tower with a new chiller system to provide cooling duty on a blow moulder."

"In partnership with the Gillard Labor Government, Lion-Dairy & Drinks will be able to reduce the carbon emissions of the energy consumed by their air compressor by 34% per cent and by 25% for their blow moulder," said Mr Dreyfus.

"The company is matching the Government's investment with around $890,000 of its own funding."

The grant was one of 89 announced nationally.

"The Clean Technology Investment Programs are about helping local manufacturers invest in clean energy. They are an important part of the Australian Government's plan for a Clean Energy Future.

"It's a win for business, the economy and the environment and I encourage more local manufacturers to apply for support from the $800 million Clean Technology Investment Program and the $200 million Clean Technology Food and Foundries Investment Program," said Mr Dreyfus.